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<br />EXHIBIT B <br /> <br />PERMITTED ENCUMBRANCES <br /> <br />1. Any law, ordinance or governmental regulation (including but not limited to building and <br />zoning ordinances) restricting or regulating or prohibiting the occupancy, use or <br />enjoyment of the Development Property, or use or enjoyment of the Development <br />Property, or regulating the character, dimensions or location of any improvement now or <br />hereafter erected on the Development Property, or prohibiting a separation in ownership <br />or a reduction in the dimensions or area of the Development Property, or the effect of any <br />violation of any such law, ordinance or governmental regulation. <br /> <br />2. Rights of eminent domain or governmental rights of police power. <br /> <br />3. Defects, liens, encumbrances, adverse claims or other matters: (a) resulting in no loss or <br />damage to the Developer, or (b) attaching or created pursuant to Article VI subsequent to <br />the conveyance of the Development Property to the Developer by the City. <br /> <br />4. Any Mortgage approved or permitted under Section 8.2 and any liens and encumbrances <br />or other interests permitted under the terms of said Mortgage. <br /> <br />1309762vRED <br />V3 to V2; 2/7/07 <br /> <br />H-l <br />